Kansai Nerolac Q4 Review - Input Cost Pressure To Impact Margins: IDBI Capital
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IDBI Capital Report
Kansai Nerolac Paints Ltd. result was below our estimates due to higher than expected raw material cost pressure.
Business recovery remained strong driven by resilient volume growth and price hikes (driven by input cost pressure).
In the international market; the company improved operating profit margins in Nepal and Bangladesh while reduced Ebitda loss in Srilanka during FY21.
Raw material cost inflation remained a major concern.
However, the company has been able to take price hike in decorative (by 2.5%) and industrial coatings (by 3-4%) businesses to offset inflation.
Management expects the raw material cost to subside due to tepid demand.
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